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Second Regular Session
Sixty-first General Assembly
LLS NO. 980115.01 JAG
HOUSE BILL 981100
STATE OF COLORADO
BY REPRESENTATIVES Salaz, Arrington, Epps, Lawrence, McElhany, Musgrave, Paschall, Sinclair, and T. Williams;
also SENATOR Lamborn. REENGROSSED
A BILL FOR AN ACT
CONCERNING THE REDUCTION OF THE STATE INCOME TAX
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Lowers the state income tax rate imposed on individuals,
estates, trusts, domestic C corporations, and foreign C corporations
doing business in Colorado from 5% to 4 :%
for income tax years commencing on or after January 1, 1998.
Refers the question of such income tax rate reduction to the electors
of Colorado at the next general election.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 3922104 (1), Colorado Revised Statutes, is amended, and the said 3922104 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
3922104. Income tax imposed on individuals, estates, and trusts single rate. (1) Subject to subsection (2) of this section, with respect to taxable years commencing on or after January 1, 1987, BUT PRIOR TO JANUARY 1, 1998, a tax of five percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.
(1.5) SUBJECT TO SUBSECTION (2) OF THIS SECTION, WITH RESPECT TO TAXABLE YEARS COMMENCING ON OR AFTER JANUARY 1, 1998, A TAX OF FOUR AND THREEQUARTERS PERCENT IS IMPOSED ON THE FEDERAL TAXABLE INCOME, AS DETERMINED PURSUANT TO SECTION 63 OF THE INTERNAL REVENUE CODE, OF EVERY INDIVIDUAL, ESTATE, AND TRUST.
SECTION 2. 3922301 (1) (d) (I) (G), Colorado Revised Statutes, is amended, and the said 3922301 (1) (d) (I) is further amended BY THE ADDITION OF A NEW SUBSUBPARAGRAPH, to read:
3922301. Corporate tax imposed. (1) (d) (I) A tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount of the net income of such C corporation during the year derived from sources within Colorado as set forth in the following schedule of rates:
(G) For income tax years commencing on or after July 1, 1993, BUT PRIOR TO JANUARY 1, 1998, five percent of the Colorado net income.
(H) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1998, FOUR AND THREEQUARTERS PERCENT OF THE COLORADO NET INCOME.
SECTION 3. Effective
date. This act shall take effect at 12:01 a.m.
on the day following the expiration of the ninetyday period
after final adjournment of the general assembly that is allowed
for submitting a referendum petition pursuant to article V, section
1 (3) of the state constitution; except that, if a referendum
petition is filed against this act or an item, section, or part
of this act within such period, then the act, item, section, or
part, if approved by the people, shall take effect on the date
of the official declaration of the vote thereon by proclamation
of the governor.